ACC expects US chemical turnaround

The US chemical industry has had a couple of down years, but its leading trade group, the American Chemistry Council (ACC), predicts that 2025 will be the year when it turns the corner. “Coming into the end of the year, the US economy is reasonably healthy,” said Martha Moore, the ACC’s chief economist, in a briefing for reporters on Dec. 12. Inflation is easing, consumer spending is buoyant, and investment in equipment is robust. In its year-end economic forecast , the ACC expects the US gross domestic product to finish 2024 with 2.7% growth before easing to 2.0% growth in 2025. US chemical production, excluding pharmaceuticals, will finish the year down 0.4%. In 2023, production volumes fell 0.2%. The ACC attributes the 2024 decline to repressed end-use markets. But with declining interest rates supporting investment and consumption, the ACC expects US chemical output to increase 1.9% in 2025. “The industrial